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Viewing cable 09BOGOTA707, CHINESE VP'S COLOMBIA VISIT LONG ON GOOD

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Reference ID Created Released Classification Origin
09BOGOTA707 2009-03-02 20:59 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Bogota
VZCZCXYZ0009
PP RUEHWEB

DE RUEHBO #0707 0612059
ZNR UUUUU ZZH
P 022059Z MAR 09
FM AMEMBASSY BOGOTA
TO RUEHC/SECSTATE WASHDC PRIORITY 7479
INFO RUEHBJ/AMEMBASSY BEIJING 0205
RUEHBR/AMEMBASSY BRASILIA 8690
RUEHCV/AMEMBASSY CARACAS 1744
RUEHPE/AMEMBASSY LIMA 7062
RUEHME/AMEMBASSY MEXICO 9774
RUEHZP/AMEMBASSY PANAMA 3116
RUEHQT/AMEMBASSY QUITO 7785
UNCLAS BOGOTA 000707 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL ECON EFIN ETRD CO
SUBJECT: CHINESE VP'S COLOMBIA VISIT LONG ON GOOD 
INTENTIONS, SHORT ON SPECIFICS 
 
REF: A. BEIJING 518 
     B. 08 BOGOTA 4178 
 
1. (U) SUMMARY.  Chinese Vice President Xi Jinping's recent 
visit to Colombia, part of a broader trip through the region, 
focused on the Chinese designation of Colombia as an official 
tourist destination, Colombia's burgeoning trade deficit with 
China, and a Colombian desire for greater Chinese investment. 
 The two sides signed seven cooperation agreements.  While 
short on specifics, the visit underscored both countries' 
desire to exploit a largely untapped relationship.  END 
SUMMARY. 
 
COLOMBIA'S INCREASED TOURISM, CHINA'S MARKET ECONOMY STATUS? 
--------------------------------------------- --------------- 
 
2. (U) The February 14-16 visit came out of a mandate from 
both Presidents to look for ways to deepen the bilateral 
relationship, following the November 2008 APEC Summit in 
Lima.  During the visit, the two sides signed seven 
agreements on various issues, including economic, health and 
technical cooperation; natural disaster assistance; 
investment promotion; sanitary issues related to traditional 
medicines; and scientific, technological, and education 
exchanges.  Also, VP Xi formally announced China's decision 
to declare Colombia an official Chinese tourist destination. 
The decision is a positive one for Colombia, which has seen a 
significant up-tick in tourism in the last several years. 
 
3. (SBU) Newly minted Trade Vice Minister Gabriel Duque told 
us that China had hoped in return for the tourism 
designation, Colombia would offer China market economy 
status.  According to Duque, Colombia wants to study the 
issue further, adding "the issue of market economy status 
will have to be negotiated." 
 
COLOMBIA HOPING TO TRADE DEFICITS FOR INVESTMENT 
--------------------------------------------- --- 
 
4. (U) Colombia's trade deficit with China surpassed USD 3 
billion for the first time in 2008 (approximately $3.3 
billion in imports and $300,000 in exports), representing 
Colombia's largest deficit with any of its trading partners. 
While Trade Vice Minister Ricardo Duarte publicly expressed 
concern over the wide trade gap, he suggested that China 
could compensate by increasing its investment in Colombia, 
particularly in manufacturing and infrastructure projects. 
VP Xi responded very generally that he understood the 
concerns and would work to increase Chinese imports from 
Colombia as well as Chinese investment in Colombia. 
 
5. (SBU) Still, when pressed for what products Colombia 
considered it could offer to substantially increase exports, 
Duque only mustered mention of chicken legs and certain 
tropical fruits, demonstrating that there is no easy fix for 
Colombia's huge trade imbalance.  Likewise on investment, few 
specifics were put forward beyond general sectors that might 
benefit from investment.  Nonetheless, Duque noted that 
currently China did not even rank in the top 30 
source-countries for investment in Colombia, so any increase 
would be welcome.  According to the Colombian Trade 
Ministry's Coordinator for Asian Relations, Rosana Prieto, 
the bilateral investment treaty that the two sides signed in 
November 2008 (Ref B) should be submitted to the Colombian 
Congress in March 2009. 
 
CHINA JOINING IDB, COLOMBIA HOPING TO JOIN APEC 
--------------------------------------------- -- 
 
6. (U) Colombian Vice President Francisco Santos, in remarks 
to the press, noted the significance of China formally 
joining the Inter-American Development Bank (IDB) at the end 
of March, when Colombia will host the Bank's annual meeting 
in Medellin.  Colombia, on the other hand, is hoping that 
China will help push its candidacy to join the Asia-Pacific 
Economic Cooperation (APEC) once the moratorium on membership 
is lifted. 
BROWNFIELD